As @zenvelo says, it would involve [re] compartmentalizing what financial transactions a single business can be involved in.
It’s sad to me that the ‘Too Big To Fail’ banks came out of the financial crisis as big as ever due to government assistance, yet my two fastest growing regional banks were forced to fire-sale assets to meet the newly mandated federal government reserves.
I bank locally at two banks, in two different towns, in two different states. Both banks were expanding to the point that there would be convenient locations available for either bank, in either town. Today, the expansions have been reversed, and 25–30+ locations have been reduced to, maybe, 10.
If the federal government can do it to the little guys, why doesn’t some of that apply to the big banks, that created the problem?
“Break up the banks” essentially means restricting one company to controlling no more assets than what the system can comfortably afford to bail out. If a bank owns x, y & z and only has liquid assets to assure the stability of x & y, then they have to sell z. That’s what was done on the local levels, and as far as I know none of our banks received any bail-out money from the government.